Sales and Use Tax Annotations

Annotation 440.0134

(a) MANUFACTURING AIDS

(2) Thinners, Solvents, Reducers, Carriers

440.0134 Light Crude Oil—Diluting Medium. Light crude oil which is placed in oil wells to act as a diluting medium so that the heavy crude can be handled by well pumps is not purchased for resale. Even though the light crude remains in the product ultimately refined, the primary purpose of purchasing the light crude was completely fulfilled as soon as it served its purpose of facilitating the pumping of the heavier crude from the well. Thus, the purchase price paid for the light crude oil is subject to sales or use tax. 11/29/50.

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